Charities expect a loss of 48% to their fundraising income and a third to be wiped off their overall income as a result of Covid-19, a new survey has revealed.

The survey, conducted by the Institute of Fundraising (IoF) in partnership with Charity Finance Group (CFG) and the National Council for Voluntary Organisations (NCVO), quizzed over 500 charities on the impacts of the coronavirus health crisis on their organisations.

The findings come after the umbrella bodies predicted some £4.3bn could be wiped off the sector as a result of the pandemic.

Many charities are already reporting huge losses to their overall income, predominantly as a result of shop closures and cancelled or postponed fundraising events, such as the London Marathon and Glastonbury.

The survey revealed clear expectations for further losses, but, at the same time, a 42% increase in the demand for charity services.

Figures also revealed 91% of charities have already or expect their cash flow to be disrupted, of which 62% said would result in reduced charitable activity.

Just over half (52%) of charities have reduced existing or previous levels of service, with a further 12% intending to do so in the future.

Meanwhile, 83% claim access to emergency grant funding is the most important thing for their sustainability over the coming three to six months.

The majority (84%) said their organisation could play a role in responding to the coronavirus outbreak, but that government funding was needed to help them do so.

A number of sector bodies and organisations have come together to urge the government to release more cash for charities amid a series of packages for businesses across the UK.

These leaders warned charities across the UK are facing ‘imminent collapse’ as fundraising income dries up and are I need of an ‘urgent injection of money that is swift, simple and substantial’.

IoF chief executive, Peter Lewis said: “Over the next 12 weeks charities will lose £4 billion in vital income that they would have received from the British public, at the same time as a 42% surge in demand for their services.

“They need urgent help to maintain and expand their services.”

NCVO chief executive Karl Wilding added: “These figures reflect the stories we’re hearing every day from our members. Charities are faced with making incredibly difficult decisions about how to ensure their organisations can help now and still be there to make a difference once the crisis is over.

“Charities run as prudently and efficiently as possible which means few have enough cash stored up to survive a prolonged downturn.”

The findings of the survey, ‘Impact of COVID-19 on the charity sector’, are based on responses from over 1,100 respondents from across the sector.

There were 558 fully completed responses, and different response rates for each question.

Read the full briefing here.

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